Schalke have terminated the contract of midfielder Albert Streit with immediate effect.

Streit, a former Germany B international, has not played for Schalke's first team for over two years after falling out of favour following a series of injuries.

The 31-year-old has previously threatened to sue his club for their attempts to terminate his contract after forcing him to train with the reserves.

Streit and the club have now reached an out-of-court settlement over the player's contract, which was due to expire next summer.

A statement onSchalke's website read: "The legal tug of war between FC Schalke 04 and Albert Streit has ended. The club have agreed an out-of-court settlement and the employment relationship is dissolved.''

The statement added that the terms of the settlement would not be disclosed. "I am glad that this very difficult time is over for me,'' Streit added in quotes reported by Kicker.de. "Whoever knows me knows that I speak the truth.''

Although now a free agent, Streit's future remains unclear. He is understood to be considering offers to play abroad but has not ruled out retirement.